Correlation Between Oxford Lane and Gladstone Investment
Can any of the company-specific risk be diversified away by investing in both Oxford Lane and Gladstone Investment at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Oxford Lane and Gladstone Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oxford Lane Capital and Gladstone Investment, you can compare the effects of market volatilities on Oxford Lane and Gladstone Investment and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Oxford Lane with a short position of Gladstone Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oxford Lane and Gladstone Investment.
Diversification Opportunities for Oxford Lane and Gladstone Investment
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Oxford and Gladstone is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Oxford Lane Capital and Gladstone Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gladstone Investment and Oxford Lane is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Oxford Lane Capital are associated (or correlated) with Gladstone Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gladstone Investment has no effect on the direction of Oxford Lane i.e., Oxford Lane and Gladstone Investment go up and down completely randomly.
Pair Corralation between Oxford Lane and Gladstone Investment
Assuming the 90 days horizon Oxford Lane Capital is expected to generate 1.06 times more return on investment than Gladstone Investment. However, Oxford Lane is 1.06 times more volatile than Gladstone Investment. It trades about 0.1 of its potential returns per unit of risk. Gladstone Investment is currently generating about 0.06 per unit of risk. If you would invest 2,227 in Oxford Lane Capital on August 31, 2024 and sell it today you would earn a total of 65.00 from holding Oxford Lane Capital or generate 2.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oxford Lane Capital vs. Gladstone Investment
Performance |
| Timeline |
| Oxford Lane Capital |
| Gladstone Investment |
Oxford Lane and Gladstone Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oxford Lane and Gladstone Investment
The main advantage of trading using opposite Oxford Lane and Gladstone Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oxford Lane position performs unexpectedly, Gladstone Investment can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Gladstone Investment will offset losses from the drop in Gladstone Investment's long position.| Oxford Lane vs. Oxford Lane Capital | Oxford Lane vs. Oxford Lane Capital | Oxford Lane vs. The Gabelli Multimedia | Oxford Lane vs. The Gabelli Equity |
| Gladstone Investment vs. Newtek Business Services | Gladstone Investment vs. Oxford Lane Capital | Gladstone Investment vs. Gladstone Investment | Gladstone Investment vs. Gladstone Commercial Corp |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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